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GB Group Ord Shs GBGPF

GB Group plc is a United Kingdom-based company, which provides identity data intelligence products and services helping organizations recognize and verify all elements of an individual's identity at key interactions in their business processes. The Company's segments include location, identity and fraud. The location segment includes address lookup, verification and capture; e-mail validation; phone verification, and data maintenance services. The identity segment includes document verification, data verification and identity investigation services. Its identity verification solutions can be configured to carry out a wide range of functions, including know your customer checks, anti-money laundering checks, age verification checks and liveness detection. The fraud segment includes transaction fraud monitoring, combating origination fraud and in-life fraud investigation services. It provides artificial intelligence powered screening for automatic onboarding or referral of customers.


OTCPK:GBGPF - Post by User

Comment by MartialArtson Jan 18, 2018 10:14pm
168 Views
Post# 27390768

RE:RE:RE:IMO

RE:RE:RE:IMO
Thor, it is very, very common with newbie investors who just compare companies based on stock prices. Talk to any regular person and they all compare raw stock prices unfortunately. I feel it's important to educate them.  We've all been "new" at some point.  You sound like a black belt investor to me but there's a lot of white belts here that are going to get whacked hard because this is not an easy match.  You have a ton of rookies heading into matches with black belt pros.  It's scary.

Newbies, let me try to explain....  stock prices are like coins, you can have nickels, dimes, quarters, loonies, toonies etc.  What's important in calculating how expense a stock is not looking at the raw share price.  You can't say that a nickel is worth the same as a loonie.  They are both round and coins but their "value" are different.  Same goes with shares.  A CMED share is a toonie, a WEED.TO share is a quarter, a HIP.V and ACB.TO are nickels.  Here's the real math:

WEED.TO is worth  $7.08B divided in 191.81M shares (or coins), each share is $36.96
CMED.TO is worth $796.53M divided in 24.43M shares, each share is $32.60

To compare them on a stock price, you would need to use the same type of coin so assuming CMED also has 191.81M shares issues, the per share price would be $796.53M/191.81M shares = $4.15 for the same type of coin.

191.81M shares is NOT the same as 24.42, there's a factor of about eight there.  So that's why CMED is a toonie and WEED is a quarter

To compare WEED.TO pricing, you need to compare $36.96 for WEED.TO to $4.15 (equivalent) for CMED.TO

I know this is complex for beginners but it's critical to understand.  HIP for example has issued a TON of shares so it's $1.40 price looks cheap but if you look at the market cap of $545.81M and put it on the same footing as the 24.42M shares issues on CMED, the "equivalent" price of HIP to compare it on equal footing is $545.81M/24.42M= $22.35 per share on equal footing.  Makes CMED look really cheap because it is.

Now, unfortunately, I'm thinking the vast, vast majority of HIP buyers right now above $1 don't understand the critical notion of market cap divided by number if issued shares. 

One thing that everyone agrees is the markets always equilibriate over time.  You can bet that pros are shorting HIP and going long with shares or call options on CMED.  The little, uneducated investor is funding them.
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